AMD Stock Jumps 8% After Dual Analyst Upgrades – Analysts Say There’s Still More Room to Run

TLDR

• Bank of America analyst Vivek Arya raised his 2030 server CPU total addressable market estimate to $170 billion from $125 billion, naming AMD his top pick in the space
• Arya lifted his AMD price target to $560 from $500, citing AMD’s long-term market position and the upcoming “Venice” next-gen server processors
• Citi upgraded AMD to Buy from Neutral, raising its price target to $575 from $460, saying AMD’s GPU potential is underpriced by the market
• Citi expects AMD to win the lion’s share of GPU business at Meta, with custom MI450 chips set to ramp in H2 2026, and forecasts AMD AI sales of $33 billion in 2027
• AMD stock closed up around 8% on Thursday, with the gains driven by the back-to-back analyst upgrades

On the surface, Thursday looked like a quiet day for tech. AMD didn’t get the memo.

Advanced Micro Devices (AMD) surged roughly 8% on Thursday after two major Wall Street banks dropped bullish calls on the stock within hours of each other, pushing the stock to around $488.66.

Advanced Micro Devices, Inc., AMD

Bank of America analyst Vivek Arya kicked things off before the opening bell. He raised his estimate for the 2030 server CPU total addressable market to $170 billion, up sharply from his prior $125 billion projection. He put AMD at the top of his list in the CPU space.

Arya pointed to agentic AI as the main driver behind that upgrade. He sees a 37% compound annual growth rate in server CPUs from 2025 to 2030. That’s a big number, and AMD sits right in the middle of it.

Along with the upgrade, he raised his price target on AMD to $560 from $500, citing AMD’s long-term positioning and the launch of its next-gen “Venice” server processors as key reasons for the call.

Citi Piles On With Its Own Upgrade

Later, Citi added to the momentum. Analyst Atif Malik upgraded AMD to Buy from Neutral and raised his price target to $575 from $460.

Malik’s argument is straightforward: the market still sees AMD mostly as a CPU company. The GPU story, in his view, isn’t priced in yet.

Citi believes AMD is set to win the majority of GPU business at Meta, with custom MI450 chips offering Meta a lower total cost of ownership than rival merchant GPU products.

The bank pointed to a previously announced deal between AMD and Meta — a six-gigawatt, four-year agreement involving a 160 million share common stock warrant. The first one-gigawatt tranche is expected to ramp in the second half of 2026 and into 2027.

Citi estimates each gigawatt of that deal translates to roughly $15 billion in revenue for AMD.

Big Numbers on the AI Revenue Forecast

On the back of that deal and broader GPU momentum, Citi now forecasts AMD AI sales of $33 billion in 2027, up 137% year-over-year, and $50.8 billion in 2028, up 54%.

Those are numbers that would make AMD a much larger GPU player than the market currently gives it credit for.

On the CPU side, Citi also raised its 2030 total addressable market estimate to $136.7 billion from $131.5 billion after Computex. That reflects a 36% CAGR from $29.3 billion in 2025.

Citi’s revised 2026-2028 EPS estimates sit 12% to 13% above Street consensus. Its $575 price target is based on a sum-of-the-parts breakdown: $281 per share for data center GPU, $204 per share for CPU, plus contributions from client, gaming, embedded, and around $35 per share in net cash.

AMD’s 52-week range runs from $115.06 to $546.44. Thursday’s close of $488.66 puts it well above the midpoint of that range.

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